The latest Oculus SDK (0.7.0.0) on Windows _absolutely_ fixes this mess. I have nothing but praise for the latest software and this is coming from someone who couldn't use his Rift since around November last year when the AMD drivers and the Rift's extended mode stopped working together.
Basically now the Rift is considered a proper HMD as a category of its' own and not a bastardized monitor. There is no more extended mode. Everything compiled with Oculus SDK 0.6.0.0 and above now works in Direct Mode only. The latency is noticeably better. With the latest AMD/Nvidia drivers, you just plug the headset in and there's no monitor-type configuration at all.
Note this is with Windows 10; I don't have first-hand experience with 8.1 but think it'd be much the same. It really is that much better.
Also, if you haven't checked out the latest VR Desktop (http://www.vrdesktop.net), you need to do this too. In addition to giving you a giant screen to see your desktop on, you can now play full-screen games in it, watch YouTube 360 videos properly in it and watch 3D movies encoded in side-by-side or top/bottom encoding. It's really really awesome :)
Basically now the Rift is considered a proper HMD as a category of its' own and not a bastardized monitor. There is no more extended mode. Everything compiled with Oculus SDK 0.6.0.0 and above now works in Direct Mode only. The latency is noticeably better. With the latest AMD/Nvidia drivers, you just plug the headset in and there's no monitor-type configuration at all.
Note this is with Windows 10; I don't have first-hand experience with 8.1 but think it'd be much the same. It really is that much better.
Also, if you haven't checked out the latest VR Desktop (http://www.vrdesktop.net), you need to do this too. In addition to giving you a giant screen to see your desktop on, you can now play full-screen games in it, watch YouTube 360 videos properly in it and watch 3D movies encoded in side-by-side or top/bottom encoding. It's really really awesome :)